Fibonacci for visual and coding use Indicator For MT4
Table Of Contents:
- Fibonacci for visual and coding use Indicator For MT4
- Trading ideas with the Fibonacci for visual and coding use Indicator For MT4
- Fibonacci for visual and coding use Indicator For MT4 - Validity Of Levels
- Fibonacci for visual and coding use Indicator For MT4 - Extending The Fibonacci Levels
- Fibonacci for visual and coding use Indicator For MT4 - Sell And Buy Entries
- Fibonacci for visual and coding use Indicator For MT4 - Conclusion
The Fibonacci for visual and coding use Indicator For MT4 automatically draws Fibonacci retracement levels off the last major price top and price bottom. The indicator works on all time frames and currency pairs.
Partially Automated Trading Besides Your Day Job
Alerts In Real-Time When Divergences Occur
Trading ideas with the Fibonacci for visual and coding use Indicator For MT4
Various strategies are born from a single trading tool. The trading tool in question will be looked into extensively in order for us to unlock its potential in discovering productive and profitable use-cases for it. Thankfully, it incorporated Fibonacci ratios in it which makes our technical analytical lives a lot lighter.
Trading should not be hard at all. It may start off being difficult but ultimately we need to maximize technical resources to gives us an edge or multiple edges in the market in support of steadily growing our trading accounts with a positive balance. many traders tend to rely on complex trading methods to unlock their profits but they end up doing the opposite.
The simpler the better. You will see that I shall touch on key aspects of trading in conjunction with this tool and this will serve to simplify your trading philosophy from a strategic perspective.
Fibonacci for visual and coding use Indicator For MT4 - Validity Of Levels
As you know this indicator uses the Fibonacci levels to output multiple support and resistance lines that we use to evaluate our retracements in preparation for our different entries. In the picture below you can see that we are basically showing you a visual representation of what the indicator actually looks like.
But if you take a closer look you can see that I have actually integrated the Fibonacci retracement tool. However, my retracement tool has an additional Fibonacci level which is 78.6. The reason why I integrated a Fibonacci retracement extension is to validate the accuracy of the Fibonacci levels which are automatically generated by the indicator.
It is always good to test the accuracy of different indicators because you need to confirm whether or not this indicator is worth using but as you can see this indicator works perfectly fine. Based on the previous image you can see that I had an additional Fibonacci level which was the 78.6 level.
Based on the standard parameters of the Fibonacci custom indicator tool 78.6 was not present hence why I added it in because it allows me to see those deep retracements which extend beyond the 61.8 region. The Fibonacci tool automatically draws in a trendline for you and then it shows the different Fibonacci retracement levels which correspond to the length of the extension.
With the Fibonacci trend line drawn automatically for us, you can currently see that the market has already broken the support trend line which has now turned the support trend line into resistance therefore from a prospective standpoint selling looks viable as shown in the image below.
Fibonacci for visual and coding use Indicator For MT4 - Extending The Fibonacci Levels
So based on the image below you can see I extended the Fibonacci levels using a horizontal drawing tool and then after that I actually deactivated the Fibonacci retracement drawing tool so that I can view the respectively lines clearly.
You should be mindful of the fact that these lines are actually support and resistance lines which you can see the validity thereof by simply checking out the past or recent price action. Usually, in such circumstances, we will maybe wait for the market to reach the 61.8 or 75.6 level before we open a buy but in our case, we are not going to do that. In fact, we are going to sell now as hinted by the image above.
Fibonacci for visual and coding use Indicator For MT4 - Sell And Buy Entries
The general idea with Fibonacci retracement levels is to look for entry points for buy trades but based on the image below we will be using these respective Fibonacci levels as our take profit targets for our respective sell trades.
With reference to the above screenshot, the idea now is to open a sell trade or multiple sell trades. There are up to five potential take profit targets specified therefore we will open five different sells trades. These levels will be providing medium to high levels of support which translates into resistance for our sell trade.
When opening our sell trades and with the market moving in the intended downward direction zones 3 and 4 will be the exiting points for the entire collection of sell positions. Because at 3 and 4 we have the 61.8 and 78.6 respectively Fibonacci levels which are strong candidates or levels to cause the market to reverse to the upside in order to form a new trend. So therefore 3 and 4 is where we will strongly consider opening buy trades once we are done selling.
The above trading method can actually be a strategy that you employ almost every single time frame. The onus still rests on you to determine the different price action patterns especially around the 61.8 and the 78.6 levels. Because remember that these are the levels that the market tends to turn around from hence why these levels become of great interest to us.
Fibonacci for visual and coding use Indicator For MT4 - Conclusion
Most traders use support and resistance especially average to advanced traders. If you are a newbie it is wise to start looking at how to identify resistance and support and levels and also how to trade off them. Luckily, in our case, we have an indicator that automatically draws these levels for you as shown above. These levels are based on various Fibonacci ratios that come from the default Fibonacci numbers of the Fibonacci retracement tool.
The standard Fibonacci tool was used to cross-check the validity and accuracy of this indicator. Furthermore, we managed to identify various sell trading opportunities and buy trading opportunities after exiting the bearish market. At 61.8 and 78.6 is where the market bounces off from upon retracement and therefore it was a good zone for us to exit our sell trades. This strategy which we discovered does not entail many resources. It is simple to execute - however - you need to make sure that you simulate thoroughly and do the necessary testing before you trade it officially on your trading account.
